In view of the heary and continuous depreciation which silver is undergoing, and the absence of any reasonable hope of ita recovery, no time should be lost in considering whether measures can b to avert threaten to arise.
2.—A common idea has hitherto prevailed, that the fall in the value of silver solely to be attributed to the demonetization of that metal in Germany and Holland, and that the depreciation ought therefore to be 'a3 a temporary condition of the t; duo to a clearly assignable cause, which' will tend to exhaust itself in' process of time, But although the origin of the downward movement may be thus explained, it is admitted that the quantity of silver actually sold by these countries, when com, the amounts which they will eventually have to dispose of, is quite limited, and the main cause of the depreciation must be looked for elsewhere.
3.—In estimating the prospects of the market for any commodity, it is necessary to consider not only the available sources of supply, but also the probable demand and from both of these points of view the chance of any permanent recovery in the price of silver is very remote, as the demand is falling off while the supplies continue to increas 4.—Nono of the great nations of the world which use silver as their standard of value, are in a position to absorb any large quantity of the metal; added to which the prominence given of late to the advantage of a gold standard, the feasibility of adopting it in of silver, have directed the attention—using country to the veutually having to alter of value. Hence, ap; ditions to its stock of silver are, and will be, limited to the bare requirements of the hour, The United States, for example, would no doubt requit iderable amount of silver, if it were to retain that standard on resuming specie payment but owing to its intimate relations with Europe, and the fact of the interest on its Public Loans being payable in gold, its leaning towards the sloption of a gold basis is becoming more and more strongly marked.
'5,—With regard to the supplies of silver, the main source of the production of that metal at the present time is the United States' mines, a source which is most pro-lifo. In Nevada and California, U.S., the mines have been yielding at the rate of five millions sterling per_annum; and according to the latest official document on the subject, the whole production of silver in the United States during the year ended 30th June Inst, was ubout $30,000,000. "In the report issued by Mr. Linderman, the Director of the Mint a6 Washington, it is estimated that upon the lowest calculation the Comstock Lude, situated in Nevada, is alone capable of producing altogether $150,000,000 in vold and silver—nearly one half silver—chile some authorities, amonget them Professor R.E. Rogers, U.S,, reckon the probable ware gate yield as twice that amount.
6.—The obvious conclusion from these facts is that, apart altogether from the silver which Germany and Holland may have to dispose of, the natural and confine tious production of the molal is in excess of the requirements of the world, and as Kuropean Nations andthe United Statesare virtually closed markets, Eastern Countries (more especially India and China) wre now the only outlet for the surplus supplies, 7.—In the ordinary course of things, a fall in the price of any commodity tends to limit its production, and although this ig theoretically true of silver, especially rds the opening up of new mines, be remembered that when once the mineral vein haa been struck, aa in the case of the Comstock Lode, the subsequent lat of production is comparatively trifling. This is proved by the fact, that out of seventeen millions of dollare produced by one mine, between 65 and 70 per cent, of the yield was paid to the shareholders clear profit, Consequently, before the working of the rich mines of Nevada and Californin could be perceptibly affected, the fall in the value of silver must have been most serious, and at all events a heavy further depreciation may yet take place, without causing any material les ening of the supply.
8.—'here can be no doubt that thia subject is one of vital importance to India. The Government suffers dissectly, in the unfavourable exchange at which it must draw for its requirements; and me directly, its prestige is endangered by the avent in which the Rupee Loans are regarded in the London market. Private individuals who are dependent on the sues of fixed incomes payable in the currency of India, and all persons resident here who have en pital invested in that country, are serious losers, At the same the trade of the country is injured. Capital tends to leave it; contracts are rendered uncertain; and if the downfall continues, transactions with India will bid fair to relapse eventually into a semiized condition of barter, India not being in itself a rich country, is greatly dependent upon the capital it derives from Kngland, and if that were once withdrawn it would be found very difficult to store. Even if the Goverment stepped in to supply the place of private enter prise, the means of raising the requisite funds would be found to be very one row and one of the main sources of the pr perity of India, namely, the facility with Which public loans have been raised, on er terms than can be obtained by for-nations or even the British Colonies, would no longer exist.
9.—The very magnitude of the evil, however, seems to point distinctly and cleatly to its only effectual remedy. under the enlightened rule of the British Government, is becoming every year more and more assimilated to the status and condition of a European Nation, To allow it to be dragged down by the deadweight of a depreciated silver currency, would be equivalent to throwing back its prospects into the earlier years of the century and undoing the labours of a whole generation. Having, by ite intimate relations with this country, been raised to an equality with European countries, as regards its commerce and
Text read from the printed page and cleaned; old type leaves the occasional error.